solution

• Last year we ordered 10,495 units for the entire year
• Last year our inventory carrying cost was 20.4%
• Last year our cost to place an order was $30.73
• Last year our unit price was $52.71

What would the COST TO PLACE AN ORDER need to be if:

• This year our goal is to have a 8.3% inventory reduction (example: a 10% reduction in $100 of inventory becomes $90 in inventory)
• This year our goal is to have a 9.7% increase in sales (example: a 10% increase in sales of 100 units becomes 110 units)
• This year our goal is to reduce inventory carrying cost by 0.5% (example: reducing an ICC of 25.0% by 0.75% becomes 24.25%)
• This year our goal is to have a 5.4% reduction in unit price (example: a 10% reduction in a $10 unit cost becomes a $9 unit price)
• ALL goals are achieved